NYSE$PNC
PNC Financial Services Group Inc · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
PNC reported strong results driven by positive operating leverage and well-controlled expenses, with increased capital levels and tangible book value.
PNC Financial Services Group reported a net income of $1.6 billion, or $3.60 per diluted share, for the third quarter of 2023. The company generated positive operating leverage, controlled expenses, and maintained strong credit quality while increasing capital levels. However, revenue declined slightly due to lower net interest income.
- Generated positive operating leverage of 3%.
- Revenue declined 1% due to lower net interest income.
- Expenses were well controlled, decreasing 4%.
- CET1 capital ratio increased 30 basis points to 9.8%.
Headline financials
Revenue & EPS history
PNC · Revenue · Quarterly
$5.23B
Revenue by segment
PNC · $1.17B total across 2 segments · Q3 2023
- Retail Banking$1.09B-60.1%93.7%
- Asset Mgmt Group$73M-81.6%6.3%
Forward guidance
PNC expects the federal funds rate to remain unchanged in the near term, between 5.25% and 5.50% through mid-2024, when PNC expects federal funds rate cuts in response to the recession.
Tailwinds
- Economic growth accelerated in the first half of 2023
- PNC’s baseline outlook is for a mild recession starting in the first half of 2024, with a small contraction in real GDP of less than 1%, lasting into the second half of 2024.
- The unemployment rate will increase through the rest of 2023 and throughout 2024, peaking at close to 5% in early 2025.
- Inflation will slow with weaker demand, moving back to the Federal Reserve's 2% objective by mid-2024.
- PNC expects the federal funds rate to remain unchanged in the near term, between 5.25% and 5.50% through mid-2024
Headwinds
- Ongoing Federal Reserve monetary policy tightening to slow inflation is weighing on interest-rate sensitive industries.
- Sectors where interest rates play an outsized role, such as business investment and consumer spending on durable goods, will contract into 2024.
- PNC’s baseline outlook is for a mild recession starting in the first half of 2024
- The unemployment rate will increase through the rest of 2023 and throughout 2024
- Inflation will slow with weaker demand
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q3 2023
-0.6%
Avg return
Earnings day
+0.2%
Avg return
5 days after
+2.3%
Avg return
30 days after
51%
37 / 73 earnings
Positive
+6.3%
Q2 2024
Best reaction
-9.0%
Q1 2020
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q4 2025 | +4.2% | +2.6% | -3.7% | |
| Q1 2026 | +2.5% | +2.6% | -3.7% | |
| Q3 2025 | -4.0% | -4.0% | -3.0% | |
| Q2 2025 | +0.6% | -0.2% | +4.4% | |
| Q1 2025 | +0.0% | -1.9% | +15.5% | |
| Q4 2024 | -0.9% | -0.9% | -3.3% | |
| Q3 2024 | +0.7% | +0.5% | +10.3% | |
| Q2 2024 | +6.3% | +3.8% | +1.7% | |
| Q1 2024 | -1.5% | +1.8% | +7.6% | |
| Q4 2023 | -0.1% | +2.2% | +9.8% | |
| Q3 2023 | -2.6% | -4.6% | -0.7% | |
| Q2 2023 | +4.1% | +5.6% | -2.9% | |
| Q1 2023 | +3.0% | +5.7% | -8.1% | |
| Q4 2022 | -8.5% | -1.6% | -2.0% | |
| Q3 2022 | +1.9% | -0.8% | +8.4% | |
| Q2 2022 | +2.5% | +6.1% | +15.7% | |
| Q1 2022 | -1.5% | -0.2% | -11.8% | |
| Q4 2021 | -6.2% | -9.6% | -9.4% | |
| Q3 2021 | -0.8% | +5.1% | +0.5% | |
| Q2 2021 | +0.1% | -6.1% | +0.6% | |
| Q1 2021 | +1.7% | +0.2% | +14.1% | |
| Q4 2020 | -3.4% | -3.2% | +0.5% | |
| Q3 2020 | -2.6% | -2.2% | +9.1% | |
| Q2 2020 | +3.7% | +1.7% | +10.4% | |
| Q1 2020 | -9.0% | +3.1% | -2.2% | |
| Q4 2019 | -4.5% | -4.1% | -3.6% | |
| Q3 2019 | +0.6% | +2.6% | +6.3% | |
| Q2 2019 | +0.1% | +0.6% | -8.5% | |
| Q1 2019 | +1.8% | +4.0% | +2.9% | |
| Q4 2018 | +0.6% | +3.4% | +2.5% | |
| Q3 2018 | -4.6% | -3.3% | +2.0% | |
| Q2 2018 | +2.1% | +3.2% | +4.0% | |
| Q1 2018 | -5.7% | -7.1% | -1.0% | |
| Q4 2017 | +0.5% | +1.8% | +0.1% | |
| Q3 2017 | -0.2% | -0.4% | -2.1% | |
| Q2 2017 | +0.0% | -0.7% | +0.6% | |
| Q1 2017 | +2.1% | +0.4% | +4.1% | |
| Q4 2016 | -3.4% | -1.4% | +4.4% | |
| Q3 2016 | +0.3% | +4.2% | +20.5% | |
| Q2 2016 | -0.9% | -0.3% | +2.6% | |
| Q1 2016 | -1.2% | — | — | |
| Q4 2015 | -1.8% | — | — | |
| Q3 2015 | -1.6% | — | — | |
| Q2 2015 | +1.8% | — | — | |
| Q1 2015 | -2.0% | — | — | |
| Q4 2014 | +2.7% | — | — | |
| Q3 2014 | -3.3% | — | — | |
| Q2 2014 | -5.6% | — | — | |
| Q1 2014 | +2.0% | — | — | |
| Q4 2013 | +4.3% | — | — | |
| Q3 2013 | +3.0% | — | — | |
| Q2 2013 | +1.9% | — | — | |
| Q1 2013 | +0.7% | — | — | |
| Q4 2012 | +3.4% | — | — | |
| Q4 2011 | -0.6% | — | — | |
| Q3 2012 | -5.0% | — | — | |
| Q2 2012 | -0.4% | — | — | |
| Q1 2012 | +0.7% | — | — | |
| Q3 2011 | -3.6% | — | — | |
| Q2 2011 | -3.6% | — | — | |
| Q1 2011 | +1.3% | — | — | |
| Q4 2007 | -2.8% | — | — | |
| Q4 2010 | -2.8% | — | — | |
| Q3 2010 | -0.6% | — | — | |
| Q2 2010 | -0.2% | — | — | |
| Q1 2009 | +5.3% | — | — | |
| Q1 2010 | +2.6% | — | — | |
| Q4 2009 | +0.8% | — | — | |
| Q3 2008 | +3.0% | — | — | |
| Q3 2009 | +3.0% | — | — | |
| Q2 2008 | -7.8% | — | — | |
| Q4 2008 | -7.8% | — | — | |
| Q2 2009 | -7.8% | — | — |
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